2019 (5) TMI 746

Head Note / Extract:Addition u/s 68 - creditworthiness of the investors and genuineness of the transaction - HELD THAT:- It is difficult to believe that the assessee company being a loss making company, any investor would make investment in them, particularly, when Shri Surendra Singh Yadav has no source to make any investment in assessee company and that M/s. Wianxx Impex P. Ltd., (Investor Company) itself was running into losses, therefore, there is no question of proving creditworthiness of both the investors and genuineness of the transaction in the matter. We, therefore, do not find any merit in these grounds of appeal of assessee and the same are accordingly dismissed. Addition on account of repair of plant and machinery - assets leased-out to its sister concern - HELD THAT:- A.O. has specifically noted in the assessment order that during the assessment year under appeal, assessee did not make any sales and purchases and no business activities or commercial activities were carried out. The assessee did not establish as to how repairs to plant and machinery and expenses claimed were genuine. Even the loss income declared by the assessee was not accepted by the A.O. and it was treated as NIL income. CIT(A) specifically noted that when plant and machinery were leased-out to the sister concern and assessee did not carry out any manufacturing activity, how the amount was spent on repair of machines. In the absence of any evidence on record to rebut the finding of fact recorded by the authorities below, no interference is required in the matter. Ground of the appeal are dismissed.